Prepare the Debtors Journal given the following information: Profit mark-up is 60% on cost. March 1: Sold merchandise to M Minnie for R 3 800. March 8: Sold goods to L Lulu with a cost price of R 1 60

Here are the required journals:

1.1.1 Debtors Journal (DJ)

The Debtors Journal records all credit sales. The profit mark-up is 60% on cost, meaning Selling Price = Cost Price $\times$ 1.6.

Step 1: Calculate sales and cost of sales for credit transactions.

• March 1: Sold merchandise to M Minnie for R 3 800.
  • Sales: $\text{R } 3800$
  • Cost of Sales: $\frac{\text{R } 3800}{1.6} = \text{R } 2375$
• March 8: Sold goods to L Lulu with a cost price of R 1 600.
  • Cost of Sales: $\text{R } 1600$
  • Sales: $\text{R } 1600 \times 1.6 = \text{R } 2560$

Step 2: Prepare the Debtors Journal.

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